NSE: VSSL · BSE: 534392
VARDHMAN SPC STEEL LTD
Manufactures specialty steel — melted and processed into bars, rods, and bright bars — for automotive and engineering customers including Toyota, Maruti, and European OEMs. A forging joint venture with Japan's Aichi Steel is being set up at Ludhiana to make ring gears and precision-forged auto components for OEMs in India, Europe, ASEAN, Africa, and Mexico. Q1 FY27 sold 59,000 tons at ₹486 crore revenue (+12% YoY) and an EBITDA per ton of ₹10,750-10,760; FY28 EBITDA per ton guidance has been raised to ₹8,000-12,000. Current melting capacity is 3 lakh tons, with an environmental clearance application to lift it to 3.6 lakh tons and a separate 5 lakh ton greenfield plant targeted for FY29-30 commissioning. The forging unit carries a ₹475 crore capex (tracking >10% below estimate) and aims to commission by March 2028 with revenue from FY30. Materials are the largest cost at 55.5% of FY26 revenue, when the company reported ₹1,754.43 crore in revenue and ₹122.02 crore in net profit. AR · MarketPing reader · 2026-08-03
Revenue streams, as the annual report describes them. Specialty steel, Forged auto components. Capacity-constrained specialty steelmaker expanding into forged auto components; capital-intensive brownfield and greenfield build-out underway
Exhibit 1: Financial summary, FY25–FY25 (all audited; no estimate years)
| ₹ crore · consolidated | FY25 |
|---|---|
| Revenue | 1,764 |
| EBITDA (ex other income) | 148 |
| margin % | 8.4 |
| Owners' profit | 93 |
| EPS, as reported (₹) | 11.40 |
| ROE % · ROCE % | 11.7 · 17.5 |
| Debt / equity (x) | 0.15 |
| Cash from operations | 127 |
| Capex | (119) |
Exhibit 2: Quarterly performance, last 4 quarters
| ₹ crore | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 |
|---|---|---|---|---|
| Revenue | 415 | 495 | 427 | 428 |
| Profit before tax | 35 | 35 | 28 | 27 |
| Net profit | 26 | 26 | 21 | 20 |
| EPS (₹) | 3.20 | 3.17 | 2.63 | 2.42 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| WELSPUN CORP LIMITED | 67,533 | 29.2 | 7.18 | 28.8 | 17.2 | 14.9 | 21.1 | 18.5 |
| APL APOLLO TUBES LTD | 60,250 | 49.0 | 11.38 | 31.4 | 22.7 | 26.1 | 22.1 | 8.0 |
| SHYAM METALICS AND ENGY L | 31,861 | 28.4 | 2.58 | 12.9 | 8.6 | 11.4 | 24.1 | 14.9 |
| RATNAMANI MET & TUB LTD. | 16,161 | 37.3 | 3.84 | 18.9 | 12.7 | 15.6 | 14.4 | 18.5 |
| JINDAL SAW LIMITED | 15,396 | 23.5 | 1.25 | 8.5 | 7.5 | 6.8 | 10.9 | 9.4 |
| USHA MARTIN LTD. | 14,152 | 27.9 | 4.29 | 18.6 | 14.1 | 17.7 | 12.0 | 21.0 |
| GALLANTT ISPAT LIMITED | 13,005 | 29.9 | 3.92 | 17.3 | 14.6 | 16.8 | 34.4 | 17.8 |
| GODAWARI POW & ISP LTD | 12,751 | 14.9 | 2.18 | 9.7 | 13.7 | 17.0 | 5.7 | 21.0 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 28.7 | 15.4 | 74 of 105 | 30% |
| P/B | 4.0 | 1.5 | 85 of 101 | 16% |
| ROCE | 15.2 | 9.1 | 26 of 115 | 78% |
| ROE | 11.7 | 8.6 | 31 of 103 | 71% |
| Debt / Equity | 0.1 | 0.2 | 44 of 101 | 57% |
| EBITDA margin | 9.0 | 11.0 | 58 of 100 | 42% |
| Market cap | 3167 | 216 | 22 of 122 | 83% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 28 Oct 2026 · Q2 FY27 results published: income up 24%, profit before tax down 46% | compliance | minimal | — | — |
| 28 Oct 2026 · Audio recording link shared for Vardhman Special Steels Q2 FY27 call | investor communications | low | — | — |
| 27 Oct 2026 · Q2 FY27 revenue rises 39% and PAT rises 52% on stronger volumes | investor communications | medium | — | — |
| 27 Oct 2026 · Q2 and H1 FY27 profits jump on higher sales and realisations | compliance | low | — | — |
| 27 Oct 2026 · Iwao Shimamoto appointed as non-executive non-independent director | management changes | medium | — | — |
| 27 Oct 2026 · Q2 revenue rises 39% and profit after tax rises 52% | results | high | — | — |
| 27 Oct 2026 · Q2 FY27 revenue rises 39%, profit after tax rises 52% | results | high | — | — |
| 26 Oct 2026 · Revised Q2 FY27 earnings call set for 28 October 2026 at 11:30 am | board shareholder meetings | low | — | — |
| 22 Oct 2026 · Earnings call on 28 Oct 2026 at 12pm IST for Q2 FY27 results | board shareholder meetings | low | — | — |
| 16 Oct 2026 · Board meeting on 27 Oct 2026 to approve Q2 FY27 results | results | low | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
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| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
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Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.